NOV Bullish Diagonal
NOV dropped early last week but has been climbing ever since. On March 15 I rolled the short calls down to the 80 strike as the short delta had dropped by 0.2. Last Thursday I uncovered NOV after 2 up days with MACD up. Overall profit is now 609%.
XLE Bullish Diagonal
XLE was pretty flat 2 weeks ago and then rose last week. On Thursday the 24th I uncovered XLE by buying back the 6 Apr 81 calls for 55 cents. Then because my longs were less than 90 days to expiration I rolled them out from Jun to Sep for a 0.90 debit. On this roll I reduced the number of contracts from 6 to 5 to keep the debit close to 0. Ideally at the time of the long roll my delta would be above 0.80 enabling me to roll the same number or increase the number of contracts, but that didn't work out this time. Overall profit is now 570% on the XLE position.
UA Bullish Diagonal
UA dropped quite a bit 2 weeks ago, especially that Thursday and Friday, then last week was pretty flat. On Tuesday the 15th I covered UA after 2 down days by selling 3 Apr 70 calls for 2.10. I picked the 70s because it was the closest to the delta I was looking for, although I used a ratio to get to the delta ratio I wanted (3 shorts, 4 longs). With the continuing move down the short dropped to 20% of its initial value on 3/23/11, so I rolled out to the May 70 strike. I sold 4 of the May 70s for 1.51 as they were at the delta I was looking for. Then UA bounced enough that on 3/24/11 I uncovered the position by buying the May 70s back for 2.2 debit. Overall profit is now 146%.
DECK Bullish Diagonal
DECK's price followed the action of NOV and XLE the last 2 weeks, dropping 2 weeks ago and rising last week. On the 18th I rolled down from the 95 to 90 call for 0.42 credit when the short dropped to 20% of its initial value. DECK was uncovered on 3/24 by buying back the 90 calls for 0.80. Overall there is a loss of 34%.
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